So this means that I should overwrite the Ext.Navigation.view and get it to read the locales object from the panel or list that is visible?

Did you figure this one out? I created a issue on the Github page, which describes this exact issue.
When using navigation view and adding containers with title, it works when you hardcode it, but not when using locales.

Sorry, I did it only because I thought this would allow me to create a production build. That is the only reason. I thought that putting the code in the touch/src folder would make it available to the sencha command.

You shouldn't touch the touch directory. Instead you should have the code somewhere else in you app and then edit the app.classpath property in the .sencha/app/sencha.cfg file. This is where it tells what directories to inspect.